ESU13 – September E-Mini S&P (Last:1607.75)

The futures head-butted a 1601.00 midpoint resistance three times yesterday (see inset), implying that if and when bulls exceed it they’ll be on their way to exactly 1613.25, its ‘D’ sibling. Both a long and a short are therefore possible today, with camouflage as the method of choice.  If you’d prefer the lazy man’s approach, however, you can simply short 1613.25 with a 1.00-point stop-loss. Position size should be limited to a single contract. _______ UPDATE (12:41 p.m.):  The 1.00-point stop-loss proved a tick too tight and took us out of the trade at the intraday high. One chat-room denizen evidently got a nice ride using a 1614.75 stop-loss, which, for purposes of risk management, implied taking a partial profit at 1608.75.  The gain would have been 4.50 per contract, or three times what was initially risked.